Greatest risk of regulatory arbitrage is for non-cleared FX, says Esma's chair
The risk that European and US regulators might adopt a different approach to foreign exchange derivatives when implementing mandatory clearing requirements is most acute when it comes to non-centrally cleared trades, according to one of Europe’s most senior regulatory officials.
“The real issue for FX derivatives that only a few have spotted is not the clearing obligation, but bilateral collateralisation. The problem of international inconsistency and regulatory arbitrage is much more serious
More on Clearing and settlement
Navigating the T+1 implications for FX traders
This FX Markets webinar provides actionable insights for industry professionals navigating the implications of T+1 across their settlement workflows and FX trading operations
Clearing to become cheaper alternative to PB for most clients
IDX panel says it’s doubtful FX will ever see a clearing mandate
LCH adds five currencies to non-deliverable swaps offering
Expansion in response to customer demand in Asia and Latin America
Nomura’s asset manager extends CLSSettlement to Japanese funds
First local asset manager to provide access in sign of success for buy-side adoption push
FX Link adds two more currency pairs
CME now offers spot FX basis spreads for eight pairs versus futures
CME clears FX cash-settled forwards for first time
Service debuts in January with two EUR/USD trades
Traiana offers USD/CNH and USD/HKD clearing via HKEX’s OTC Clear
Deliverable contracts are forwarded to Hong Kong Exchange via Traiana’s clearing hub CCP Connect
Two banks sign up for ForexClear compression
New service brings greater capital and operational efficiency to FX market participants
